Bankrupt Lord + Taylor Owes Millions to Ralph Lauren, Michael Kors and More
Lord + Taylor’s biggest creditors include some of the world’s most recognized fashion brands.
Yesterday, the department store filed for Chapter 11 protection in the United States Bankruptcy Court for the Eastern District of Virginia. According to the filing, it owes millions of dollars to 10 companies, as well as hundreds of thousands to at least 20 more firms.
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The retailer’s largest creditor is the Israel-based Liquidity Capital II LP, with an unsecured claim of $8.5 million. It also owes $4.7 million to G-III Leather Fashions Inc., $3.5 million to Polo Ralph Lauren Clothing and $2.1 million to Michael Kors LLC. Other notable creditors include L’Oréal Lancôme and Facebook Inc, which have respective claims of more than $1.1 million and $1 million.
What’s more, Lord + Taylor owes roughly $960,400 to Ralph Lauren Childrenwear, $772,500 to Caleres Inc., $745,200 to Chanel Inc., $688,700 to Supreme International Corp., $566,100 to Urban Outfitters Wholesale Inc. and $557,100 to Steven Madden Ltd.
Following months of speculation, Lord + Taylor and owner Le Tote Inc. sought bankruptcy protection from creditors as it failed to turn around its business amid the coronavirus pandemic. In April, a source close to the company told FN that it had laid off the majority of its merchants and is seriously considering liquidating its business.
At the time, Lord + Taylor also saw the bulk of its executive team resign, including president Ruth Hartman. Le Tote confirmed then that it had implemented “significant companywide layoffs … with only key employees remaining to preserve the business.”
However, Lord + Taylor’s struggles were present prior to the coronavirus’ spread in the U.S. Before announcing its intention to sell the chain to Le Tote for $75 million in August, previous owner Hudson’s Bay Company had struggled for some time to revive Lord + Taylor. HBC, which sealed the deal on its own go-private plans in January, memorably shuttered the company’s century-old flagship on New York’s storied Fifth Avenue, as well as another 10 of its 48 outposts, last year.
Over the past few months, other notable names in the retail space — including JCPenney, Neiman Marcus, J. Crew and just this weekend Tailored Brands — have also gone bankrupt as stores were temporarily shuttered for weeks and consumers reduced spending on nonessential goods.
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